Newsquawk Daily European Equity Opening News - 29th April 2024

29th April 2024

ASIA

APAC stocks began the week on the front foot after the tech-led surge last Friday on Wall St and amid increased optimism regarding a Gaza truce with negotiators set for talks in Cairo on Monday, although Japan was on holiday and ahead of this week's key risk events. ASX 200 was led higher by real estate, tech and telecoms owing to softer yields. Hang Seng and Shanghai Comp. gained with the former entering into bull market territory after climbing over 20% from its January lows, while participants digested a slew of earnings and the mainland also shrugged off the slowdown in March Industrial Profits.

Baidu (9888 HK/BIDU) - Baidu shares rose as much as 6% in Hong Kong after following reports of Tesla reaching an agreement with Baidu. The deal is for Baidu to offer its mapping and navigation system for FSD. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +1.39% at 18,166.91 FTSE 100: +0.75% at 8,139.83 CAC 40: +0.89% at 8,088.24 Euro Stoxx 50: +1.37% at 5,006.65 IBEX 35: +1.56% at 11,154.60 FTSE MIB: +0.91% at 34,249.77 SMI: +0.74% at 11,344.32.

SECTORS: IT 2.15%, Industrials 1.99%, Consumer Disc 1.35%, Materials 1.05%, Healthcare 0.99%, Telecoms 0.87%, Financials 0.77%, Utilities 0.68%, Consumer Stpl 0.50%, Energy 0.41%

FTSE 100

Anglo American (AAL LN) - Co. is reportedly set to be bought or broken up after rejecting GBP 31bln BHP (BHP AT) offer, investors believe, according to FT. (FT) BHP is said to be mulling an improved offer for Anglo American with a revised bid to be made in the coming weeks, according to Reuters sources. Talks are ongoing and BHP has not yet made a decision on the size and structure of the new proposal, sources added. (Reuters)

BP (BP/ LN) - Co. and Kogas signed a long-term LNG sale and purchase agreement. (Newswires)

British American Tobacco (BATS LN)/Imperial Brands (IMB LN) - The Biden administration reportedly dropped a plan to ban menthol cigarettes, according to WSJ on Friday. (WSJ)

HSBC (HSBA LN) - Norway sovereign wealth fund is to vote in favour of HSBC's planned bonus policy reform for material risk takers. (Newswires)

IAG (IAG LN) - EU antitrust regulators on Friday sent a statement of objections to IAG on the Air Europa deal amid concerns the proposed takeover could reduce competition, according to Reuters sources. The aim is to ensure that the IAG/Air Europa deal does not result in increased prices or lower quality of services. Plans to offer more than 40% of Air Europa's 2023 flights to rivals to address EU concerns. IAG will double capacity to be divested compared with the remedy package in a previous attempt to acquire Air Europa. IAG is ready to cede slots in most in-demand schedules. IAG offers to give feeder traffic, slots, planes, crew, maintenance, ground handling, and customer bookings on all divested routes to rivals. IAG to offer rivals acquiring its long haul routes access to feeder traffic in Europe. (Newswires)

Rolls-Royce (RR/ LN) - Rolls-Royce is said to have trimmed down plans to build new mini nuclear reactors in the UK. This follows delays to a government design competition, according to The Telegraph. Co. said there was no longer enough time to build the factory and make pressure vessels for early 2030. Rolls-Royce had aimed to complete the first SMRs by 2030. (Telegraph/CityAM)

OTHER UK COMPANIES

888.com (888 LN) - Co. is to withdraw adverts from multiple locations in London after pushback against their tone. (Guardian)

Hipgnosis (SONG LN) – Blackstone is said to make a fresh bid for the Co., as early as Monday. Sources add that it will offer more than USD 1.25/shr, according to Sky News. (Sky News)

BROKER MOVES

Serco (SRP LN) initiated with Buy at HSBC

DAX

Deutsche Bank (DBK GY) - Update on Postbank takeover litigation matter: The Court's statements will impact the estimation of the probability of a future outflow and result in a legal provision in Q2 and the provision will impact Q2/FY profitability and capital ratios. The estimate of the full amount of all claims, including cumulative interest, is approximately EUR 1.3bln. Management does not expect a significant impact on the bank's strategic plans or financial targets. (Newswires)

Daimler Truck (DTG GY) – UAW President said the union has reached a tentative deal with the Co. on a new contract for over 7,300 US hourly workers and avoids strikes. (Newswires)

Mercedes-Benz (MBG GY) – US DoJ completed the probe related to diesel-emission and will not file charges, via Reuters. (Reuters)

Porsche (P911 GY) - Q1 2024 (EUR): Revenue 9.011bln (exp. 8.77bln), Operating profit 1.28bln (exp. 1.28bln), Operating return on sales 14.2% (exp. 14.9%), Deliveries 77,640, -3.9% Y/Y; confirms 2024 forecast for return on sales of 15-17%. Order books are mostly full for this year. (Porsche IR) CFO said demand in China remains challenged; Co. will stick to its value over-volume strategy, and it is quite impressive what Chinese rivals are doing in terms of electrification. CFO said the Co. will continue to invest heavily in China, and expects 'some' China recovery in the second half of the year. (Newswires)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Co. appointed John McComas as the new CEO of the North American division; effective June 1st. (Newswires)

BROKER MOVES

CAC

Engie (ENGI FP) – Co. plans to sell its stake in Morocco’s largest coal plant in Safi. (Newswires)

TotalEnergies (TTE FP) – The CEO said the Co. is expected to complete the first phase of the solar power project in Iraq within the next year. (Newswires)

Vivendi (VIV FP) - Q1 (EUR): Revenue 4.28bln (exp. 3.24bln). Organic Revenue +5.4%. Continues studying potential separation plans. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - French Finance Minister Le Maire said they have sent a non-binding letter of intent to the Co. regarding the acquisition of three strategic units which Le Maire described as sovereign that “must stay within the exclusive control of France”. (FT/LCI) In the context of upcoming debt restructuring and concern that foreign investors could use this as an opportunity to gain control of such units

BROKER MOVES

PAN EUROPE

Bawag (BG AV) – Q1 (EUR): Op. Income 383.8mln (exp. 386.4mln), NII 311.8mln (exp. 313.6mln). (Newswires)

BBVA (BBVA SM) – Q1 (EUR): Net Income 2.31bln (exp. 1.95bln), NII 6.51bln (exp. 6.13bln). Expects to post double-digit growth in full-year profit. Improved outlook for the Co’s revenues in 2024. (Newswires)

Energy Names - Turkey is in discussions to buy LNG from ExxonMobil (XOM), according to Turkish Energy Minister Bayraktar speaking with the FT; the deal would guarantee as much as 2.5mln/T of LNG a year as part of a long-term multibillion-dollar deal. (FT)

Italian Banks – Italian Central Bank said banks in Italy will need to set aside extra cash to cover systemic risks; The buffer will amount to 1%. (Newswires)

KBC (KBC BB) – KBC Ireland is to return its banking licence to the Central Bank of Ireland. (Newswires)

Philips (PHIA NA) – Q1 (EUR): Revenue 4.1bln (Exp. 4.14bln), Op. Income -824mln (exp. 166mln), Adj. EBITA margin 9.4% (exp. 8.7%). Co. reached USD 1.1bln early settlement in sleep apnea case. In Q2 intends to cancel 4.4mln shares acquired this year. Co. completed EUR 1.5bln share buyback program for capital reduction purposes announced in July 2021. (Newswires)

Stellantis (STLAM IM/STLAP FP) – RAM has discontinued production of the RAM 1500 classic for the Canadian market. RAM 1500 classic production will continue for the US and Mexico. (Newswires)

BROKER MOVES

Jeronimo Martins (JMT PL) upgraded to Overweight from Underweight at JP Morgan

SMI

UBS (UBSG SW) – The Co. is weighing a synthetic risk transfer amid capital boost proposals, via Bloomberg. (Bloomberg)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.02% at 5,099, NDX +1.65% at 17,718, DJIA +0.40% at 38,239, RUT +1.05% at 2,001.

SECTORS: Communication Services +4.7%, Technology +1.85%, Consumer Discretionary +1.32%, Materials +0.63%, Industrials +0.17%, Real Estate +0.07%, Health -0.01%, Consumer Staples -0.19%, Financials -0.2%, Energy -1.03%, Utilities -1.12%.

Apple (AAPL) – Resumed talks with OpenAI to bring generative AI to its IOS 18. Co. is also continuing negotiations with Alphabet’s Google (GOOG) for possible licensing of the Gemini AI chatbot, via Engadget. (Engadget)

Boeing (BA) - Fitch on Friday revised Boeing's outlook to negative but affirmed Boeing's 'BBB-' long-term issuer default rating and 'F3' short-term IDR. (Newswires)

Tesla (TSLA) - CEO Musk made a surprise visit to Beijing with media reports saying he aims to discuss enabling autonomous driving mode on Tesla cars in China. Later, it was reported Tesla is to partner with Baidu (9888 HK) for China self-driving approval, according to Bloomberg. (BBC/Bloomberg) Separately, two US Senators say NHTSA should require Tesla (TSLA) to restrict autopilot use to certain roads. (Newswires)

Paramount (PARA) - Co. is reportedly preparing to fire CEO Bakish, via FT citing sources; additionally, sources add that the Co. is expected to receive a counterbid from Sony and Apollo this week to the offer from Skydance Media. (FT)

29 Apr 2024 - 06:55- Research Sheet- Source: Newsquawk